Offshore Company Formation in UAE
An offshore company is a legal entity established in a tax haven or offshore financial center, being protected by specific legislation which guarantees a status of partial or full tax exemption. In some jurisdictions, offshore companies may trade or do business only outside of the country in order to be tax exempt, while in others companies may do local and international business.
Merits of Setting up an Offshore Company in UAE
- Nil Taxation: Most offshore companies pay no local taxes on the income derived from offshore operations, i.e. from activities outside of the jurisdiction of company formation. These offshore companies include RAK, JAFZA and BVI and others.
- Anonymity: Registrars in most offshore jurisdictions do not disclose information about directors, shareholders and beneficiaries of offshore companies. Thus, the underlying principal may carry out all relevant transactions in the name of an offshore company while remaining anonymous. It is important to note that this applies to legitimate operations only.
- Asset protection: In the international business context, it is usually the laws of the jurisdiction of incorporation that are applied, rather than those, where the company is being sued. Many offshore jurisdictions are renowned for their favorable asset protection laws. Complementing an offshore company with an offshore banking facilities, protects company’s assets even further.
- Ease of Reporting: The compliance reporting requirements for offshore companies are limited, especially in comparison to companies, registered in onshore jurisdictions. Most offshore IBC companies are not required to file annual reports and accounts in the jurisdiction of the company formation. Instead, local authorities charge a flat annual license fee, which is insignificant in comparison to reporting expenses and taxes in onshore jurisdictions.
- Operating Costs and Fees: With limited reporting requirements, offshore companies generally have lower maintenance and operating fees. The cost of compliance, preparation of accounts and auditing in on-shore countries is often considerable while offshore companies save on these particular expenses.
Advantages of UAE offshore company
- UAE national as shareholder or sponsor is not required.
- There is complete obscurity and privacy.
- 100% foreign ownership for the investor.
- Public register of company officers is not required.
- No employees and related costs are involved since there is no onshore office.
- The company is allowed to own real estate properties on approved areas by the Authority.
- The company can hold multi-currency bank accounts.
- There is full return of the profits and capital.
- The offshore company is discharged from all corporate and income taxes.
- Minimum of one Director.
- No foreign currency restrictions are involved.
- The setting-up costs are reasonably less.
- There is only minimum capital requirement to set-up an offshore company.
What makes an offshore company in UAE unique?
- UAE is an independent or ‘overseas’ territory and is white-listed.
- UAE has Double Taxation Avoidance Agreements (DTAA’s) with several countries, currently more than 40.
There needs to be a registered agent that is approved by the authority and is eligible to form an offshore company. The agent should be located either in the free zone itself or in the UAE.
We are registered agent and the market leader in offshore business consultancy offering solutions to customers looking to reduce taxes, protect assets and limit liabilities.
What we offer:
- Registered agent
- Registered office with PO Box
- Preparation of registration forms
- Preparation of Incorporation certificate
- Preparation of Memorandum and Articles of Association
- Assistance in opening a multi-currency bank account
- Filing with the registrar of companies
While associating with HLB Hamt, you get the combination of our in-depth local expertise and extensive experience, which gives us the ability to precisely understand the unique needs of your business. We are thus, able to recommend the best possible options and ensure that your business is set up with minimal hassles and effort.
We undertake the entire task, so that you are free to concentrate on the bigger picture – your business.